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US Oil Industry Set to Break Record

The rapid increase in the production in shale is definitely going to push the overall oil output of the United States to more than ten million barrels a day which has already broken the record that was set in 1970. This rate of production has crossed the threshold which only a few could have imagined just a decade ago. This particular record is not expected to last for a long period of time since the government of the United States has already forecasted that the oil production of the nation will rise to about eleven million barrels per day later this year which would actually be the level to give Russia who is the leading oil producer of the world good competition.

Both the political and economic impacts of this rising output of the United States are simply breath taking which has resulted in cutting down oil imports of the nation to about one fifth over a decade. This will also result in high paying jobs in the rural communities which in turn will help in the lowering of the consumer prices for domestic gasoline by about 37 percent from a peak in the year 2008. The fears of extreme shortages of energy that gripped the US in the 1970s have been currently replaced by a presidential policy of the dominance of energy at a global level. John England who is the head of consultancy Deloitte's US energy and resources practice stated that as shale natural gas has displaced coal at the power plants it had an incredibly positive impact for the economy & workforce of the United States even the reduced carbon footprint as well.

The energy exports of the United States are now competing with Middle East oil for buyers in the Asian continent. The daily trading volumes of US oils future contracts have nearly doubled in the past decade and which is averaging more than about 1.2 billion barrels each in the year 2017. This report is per the exchange operator CME Group. The oil price benchmark of the United States, West Texas Intermediate crude is currently being very closely watched on a worldwide level by foreign customers of US gasoline, diesel and crude. Still the question remains that whether the shale sector can continue at this pace or not.